Quote:
Originally Posted by DarkstarZero
New update:
We now know why off-the-lot used car values haven't dropped much while auction prices have.
https://nypost.com/2020/06/05/used-c...utos-languish/
"More than 4 million off-lease vehicles are due to return to the market this year, at a rate of around 340,000 per month.
Automakers and their finance arms are trying to slow the pace at which those vehicles hit auctions to avoid flooding the market.
KAR Auction Services has bought 200 acres of land and is seeking another 100 acres to store cars for major customers.
Tom Kontos, chief economist at KAR, which alongside Manheim dominates the US used-car auction market, calls these vehicles “melting ice cubes.” They lose value every day, and cannot be held back for long."
Other reports show that they're now storing cars in stadium parking lots, since those aren't going to be used any time soon.
They're trying to control supply to reduce the flood of cars into the market which artificially keeps off-the-lot prices high. This helps out big used car dealers like CarMax who need to sell their cars for more than they paid for, before the flood happens, otherwise they would go bankrupt as each vehicle would then become a liability if the value on all of them fell below the price they paid.
However, this is basically like a dam holding back a rising river. Eventually they're going to have to open the flood gates before the dam breaks. All things considered, it still seems like around September is when the implosion will occur. |
so a lot of nice cars getting tons of bird poop cooked into the clear coat under the summer heat. how many CF roof BMWs will be in the mix and go down the drain?
